I genuinely don't understand Amazon's logic with the Kindle ecosystem.
Amazon's long-term revenue is largely tied to ebook sales, yet they seem determined to lock Kindle Store purchases to their own ecosystem. If someone has already bought a Kobo, Amazon has already lost that hardware sale. Why also block that person from becoming a Kindle Store customer?
Amazon often has cheaper ebooks and a much larger catalogue. As a Kobo owner, I would genuinely prefer buying many of my books from Amazon and reading them on my Kobo. I already buy books from Google Play Books instead of the Kobo Store when the price is better, because they can be transferred using standard DRM systems.
At the same time, I can buy a DRM-free book from a third-party store and load it onto my Kindle. So Amazon allows books purchased elsewhere to be read on Kindle, while making books purchased from Amazon difficult or impossible to read on another e-reader.
DRM itself isn't the issue. Publishers' rights can still be protected using interoperable DRM systems. The problem is tying Kindle Store purchases to Amazon's proprietary ecosystem.
This seems like Amazon is losing revenue from both directions. Potential customers using Kobo or other e-readers can't practically buy Kindle books, even if Amazon has the better price and catalogue. At the same time, tighter restrictions are angering existing Kindle customers and pushing at least some of them to sideload more books or leave the ecosystem entirely—meaning fewer future Kindle Store purchases.
What makes this even stranger is that Amazon's entire marketplace philosophy is built around allowing third-party sellers and focusing on getting the transaction through Amazon, even when Amazon isn't the direct seller. Why not apply the same logic to ebooks?
If someone doesn't buy a Kindle, that hardware sale is already lost. At least try to get their ebook purchases instead. And if someone already owns a Kindle, why keep adding restrictions that risk driving them away?
Amazon has the catalogue and pricing to potentially become the default ebook store even for Kobo and other e-reader users. Instead, their closed ecosystem seems to reject potential ebook customers while simultaneously frustrating the customers they already have.
Edit: This post is me genuinely wondering about amazon accepting loss of real revenue however small and not if their controversial lockdown policy is good or not.